Aurora mine in Minahasa stands idle

The Meares Soputan Mining (MSM) and Tambang Tondano Nusajaya (TTN) companies, affiliates of the Australian-based Aurora Gold Mining company in Minahasa, are the latest victims of the current political and economic uncertainty in Indonesia. "These two projects are still in maintenance and supervising status," Ir. J. Victor Malonda, the Head of General Mining in the Ministry of Mines' Regional Office, North Sulawesi told TEMPO Interaktif yesterday, August 18. "To maintain efficiency, the companies were forced to dismiss 180 employees."

According to Victor, the two mining companies have waited since September 1999 for the order to resume operations. The President and Director of MSM and TTN, John B. Vernon, would only say that the two projects would be reactivated when the political and economic situation in Indonesia stabilized. No financial institution has invested in the short-term (12-18 month) mining projects. Moreover, illegal miners disrupt the companies' exploration programs. Regarding the illegal mining activities, a North Sulawesi local government spokesperson, Drs.

David A. Bobihoe, said, "The local government will continue efforts to prevent overlapping operations."

North Sulawesi has issued 7 Work Contracts, 11 Mining Grants, and permits for 4 Small-Scale Mines and 4 People's Mining Areas since mid-August. As for the Work Contracts, only the Newmont Minahasa Raya mining company has an exploitation permit. The other companies own exploration licenses.

The Newcrest Nusa Sulawesi company once owned the largest Work Contract, but its area of operation has now been reduced.

The Newmont Mongondow Mining company also had its area of operations reduced. (*)